Budgetary control practices and financial performance of soft drink companies in kawempe division,kampala: acase study of Riham:

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Kampala International University, College of Economics and Management.
The purpose ofthe study was to assess the effect ofbudgetary control practices andfinancial performance of soft drink companies in Kawempe division based on Riham Company. The study was set determine the effect of cost allocation on the financial performance, to determine the effect of cost evaluation on financial performance and to examine the effect cost monitoring onfinancialpeiformance ofsoft drink Companies in Kawempe division. The study was conducted in Riham located in Kawempe Kampala; data was collected using closed ended questionnaires were the information was attained from 40 respondents. The study results reveal that budgetary control practices have a high bearing on financial perfOrmance of the organization since. The study reveals that cost evaluation, cost allocation and cost monitoring have a bearing on financial performance of soft drink Companies in Kawempe division. Based on the study, the study concludes that cost evaluation andfinancial perfOrmance of manufacturing companies were found to have appositive but not significant effCct, The study concludes that cost control affCct profitability ofthe organizations under the study. The findings also reveal that there was a positive but not sign~icant relationshz~ between cost monitoring andfinancial performance ofthe organizations. The positive sign of significance indicates that there is a direct relationshz~ between cost monitoring and financial performance. The process of budgetary controls in manufacturing company should be very comprehensive covering all departments and sections as this will enable management to e/fCctively implement budgetary controls. Budgets should also be realistic by not only putting much concentration on past performance but also reflect how the future is likely to be, given the current conditions. Also the company should look at other factors that directly affCct performance. That the cost unit should exclusively be responsible for providing cost evaluation information in the company, the managers who object to standard costing should be educated on the relevance of standard costing to the company. Since standard costing helps in profit improvement, the researcher recommends the employment of more qualified cost accountant so that comparative analysis ofdifferent costing techniques will be assured.
a research report submitted to college of economics and management in partial fulfillment of the requirements for the award of bachelors’ degree of business administration in accounting and finance of Kampala international university.
Budgetary control practices, financial performance, drink companies, kawempe division,kampala